News
AMP Capital Wholesale Office Fund (AWOF) launched its debut Australian bond deal on November 19, targeting a minimum size of A$200 million (US$185.1 million) in a deal which forms part of the broader refinancing of A$850 million of banking facilities due to expire in April next year. Market sources say the issuer is looking for a five-year deal with price talk around the 250 basis points over swap level.
On November 17 ME Bank priced a A$780 million (US$728 million) residential mortgage-backed security (RMBS) deal – its third non-government backed transaction of 2009 and the third asset-backed security (ABS) to price in Australia in a week. SMHL Securitisation Fund 2009-3 was also upsized from indicative volume of A$500 million at launch.
Two deals – from Council of Europe Development Bank (CEB) (AAA/Aaa/AAA) and Inter-American Development Bank (IADB) (AAA/Aaa) – priced a total of A$700 million (US$654.08 million) in the Kangaroo market on November 17. At the same time a third supranational – African Development Bank (AfDB) (AAA/Aaa/AAA) – was on roadshow in Australia with the goal of becoming a more regular Kangaroo borrower.
The long-awaited reorganisation of National Australia Bank (NAB)'s debt business has brought the bank back into the frequent borrowers space where it has been under-represented for some time, with new roles for several individuals with track records in that market. Corporate and less frequent borrower activity has also been restructured in an attempt to offer synergies between bond, loan and securitisation markets.
On November 16 the Council of Europe Development Bank (CEB) (AAA/Aaa/AAA) announced the launch of its fourth Kangaroo transaction of 2009 – an increase to its 2015 line through lead managers RBC Capital Markets, TD Securities and Westpac Institutional bank. The bond was inaugurated in November 2005 with an initial volume of A$200 million (US$186.5 million), and was tapped three times in 2006 bringing its total outstanding volume to A$600 million.
Inter-American Development Bank (IADB) (AAA/Aaa) is set for its fourth Kangaroo transaction of 2009 having announced, on November 16, the launch of an increase to its 2016 line through lead managers ANZ Banking Group, Commonwealth Bank of Australia (CommBank) and RBC Capital Markets. The bond was introduced in May 2006 and has not subsequently been tapped from its initial size of A$300 million (US$280.08 million).
On November 13 Nordic Investment Bank (NIB) (AAA/Aaa) increased its 6 per cent August 2014 Kangaroo bond by A$200 million (US$185.7 million), bringing the total in this line to A$500 million. The tap, led by ANZ Banking Group and Deutsche Bank, priced at 27 basis points over mid-swaps or 82.5 basis points over the 6.25 per cent June 2014 Australian commonwealth governnment bond. This compares with pricing of 36 basis points over swap when NIB inaugurated the line on August 12.
German agency KfW Bankengruppe (KfW) (AAA/Aaa/AAA) has increased its March 2017 line, pricing a A$350 million (US$327 million) tap via lead manager TD Securities. The tap brings the entire line to A$850 million. The new tranche priced at 104.75 basis points over the February 2017 Australian government bond, which, according to KangaNews calculations, equates to high 30s to 40 over swap.
Westpac Banking Corporation (Westpac) (AA/Aa1) returned to its domestic market on November 11 with the pricing of A$2.5 billion (US$2.32 billion) of five- and seven-year paper. According to KangaNews data, the 2016 tranche – which is unguaranteed – is the longest-dated senior unsecured, domestic transaction from an Australian big four bank since the same issuer priced A$140 million of 10-year notes in August 2001.
Following the November 6 pricing of its second Kauri transaction of 2009 – a NZ$100 million (US$74.04 million) increase to the issuer's 2015 line – Nordic Investment Bank (NIB) (AAA/Aaa/AAA) has become the largest Kauri issuer by outstanding volume. Its total of NZ$950 million in two New Zealand market lines pushes European Investment Bank (EIB)'s (AAA/Aaa/AAA) NZ$900 million into second place.
On November 11 the European Investment Bank (EIB) (AAA/Aaa) priced a A$1.5 billion (US$1.39 billion) April 2015 Kangaroo bond – the largest single tranche transaction ever issued into the Kangaroo market. The new line priced at 83 basis points over the benchmark April 2015 Australian government bond, which rate sheet data indicates equates to the region of 23-25 basis points over swap.
Dutch agency Bank Nederlandse Gemeenten (BNG) (AAA/Aaa/AAA) has issued a privately-placed A$230 million (US$213.92 million) November 2013 Kangaroo bond with ANZ Banking Group (ANZ) as lead manager. This is the first time BNG has been present in the Kangaroo market since November 2006.